New Fed Chairman Kevin Warsh confirmed. He will take over the central bank at a difficult time
Kevin Warsh will lead the central bank, which has long been under political fire from President Donald Trump. At the same time, he will take office in the face of mounting inflationary pressure caused by the war in the Middle East.
Warsh will succeed Federal Reserve (Fed) Chairman Jerome Powell, whose eight-year term was marked by several economic crises and bitter conflict with the White House.
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New Fed chairman approved. The most divided vote in history
Warsh was approved on a 54-45 vote largely split along party lines. Among Democrats, only Senator John Fetterman from Pennsylvania crossed the line, voting for Warsh's nomination.
It was the most divided vote in history for a candidate to chair the Federal Reserve, underscoring Democratic concern about Trump's fight with the Fed. For their part, Republicans generally welcome Warsh's leadership, CNN writes.
The senators' decision ends a months-long saga that began in the summer of 2025 and included an extensive search for Powell's successor (his term expires on May 15).
Kevin Warsh becomes Fed chairman
Warsh is widely seen more as an ally of President Donald Trump, who has long pushed for interest rate cuts.
However, he will soon take office facing mounting inflationary pressures caused by the US and Israel's war on Iran. According to the latest Consumer Price Index (CPI), inflation rose to its highest level in three years in April.
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The energy shock complicates hopes for a quick rate cut, as investors now expect the Fed to keep its benchmark rate unchanged through the end of the year — or even raise it if inflation worsens.
The new Fed chairman. Donald Trump joked that he would sue him
This prospect is likely to anger Trump, who may direct his anger at Warsh in the same way he did against Powell. The president even joked earlier this year that he would sue Warsh if he didn't lower interest rates.
However, the Fed chairman is only one voice on the FOMC (Federal Open Market Committee), which decides on interest rates. Although Warsh would have control over the agenda of each Fed meeting, he would not have unilateral influence on decisions made by a majority of the committee.
